The Government of India along with public sector banks, has introduced several initiatives to make education loans accessible and affordable. Aspiring students who wish to pursue higher education in India or abroad can apply under various education loan schemes. Supportive schemes like CSIS and CGFSEL help them avail of interest subsidies and credit guarantees for loans up to INR 7.5 lakhs. Their dedicated online education loan Vidya Lakshmi Portal simplifies the application process. Let’s explore the details in this blog.
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How to Get Education Loan from Government?
Getting an education loan from the government is a streamlined and accessible process. Initiatives like the Vidya Lakshmi Portal and financial assistance schemes such as PM-Vidyalaxmi, CSIS, and CGFSEL support students from diverse socio-economic backgrounds. This helps in ensuring that financial constraints don’t hinder higher education aspirations.
All you need to do is understand the eligibility criteria, prepare the necessary documents, and apply for the education loan scheme that suits your academic dreams. The application process to get an education loan from the government can also be simplified as-
- Explore the financial assistance schemes by the government
- Explore the State Government education loans scheme
- Explore education loan scheme on Vidya Lakshmi Portal and apply on the given platform
Platforms to Apply for Education Loan from Government
Students can use various online platforms like Vidya Lakshmi Portal, AICTE Portal, National Scholarship Portal, etc. when applying for an education loan from the government. They simplify the application process and offer access to multiple loan schemes, making it easier for students to choose the right option.
| Platform | Applicable Schemes |
| Vidya Lakshmi Portal | – PM-Vidyalaxmi Scheme – CSIS (Central Sector Interest Subsidy Scheme) – CGFSEL (Credit Guarantee Fund Scheme for Education Loans) – Various schemes from nationalized and private banks |
| National Scholarship Portal (NSP) | – Central Sector Scheme of Scholarships (CSSS) – Special Scholarship Scheme for Jammu & Kashmir and Ladakh – Various state-specific schemes for students from weaker sections |
| AICTE Portal | – Special Scholarship Scheme for Jammu & Kashmir and Ladakh – PM-Vidyalaxmi Scheme- State-specific schemes for technical courses |
| Canara Bank Portal | – CSIS (Central Sector Interest Subsidy Scheme) – CGFSEL (Credit Guarantee Fund Scheme for Education Loans) |
| State-Specific Portals | – Maharashtra State Education Loan Scheme – Tamil Nadu State Education Loan Scheme – Gujarat State Education Loan Scheme – Other state-specific schemes for local students |
Also Read: Find out how much education loan you can get for pursuing higher education in India and abroad. Explore factors like family income and creditworthiness.
Explore the Government Financial Assistance Schemes
The Indian government offers multiple education loan schemes. They help students avail of the desired financial assistance to pursue higher studies. Some schemes support students from economically weaker sections, while other schemes provide interest subsidies during the moratorium period. Let’s explore the schemes for education loans from the government-
PM-Vidyalaxmi Scheme
The PM-Vidyalaxmi Scheme provides financial support to meritorious students. This lets you pursue higher education without collateral or guarantors. Students admitted to 860 top-quality institutions in India can apply for collateral-free and guarantee-free loans from the government. Such loans are also called education loans without collateral and co-signer.
To apply, you can visit the list of eligible institutions. Now, apply online through the Vidya Lakshmi Portal. Fill out the Common Education Loan Application Form (CELAF) and upload the necessary documents. Finally, choose the best loan scheme based on your needs and eligibility.
Central Sector Interest Subsidy Scheme (CSIS)
The CSIS Scheme, implemented in 2009, provides interest subsidies during the moratorium period (course period + one year) for students from economically weaker sections (annual parental income up to INR 4.5 lakhs).
The scheme applies to education loans taken under the Indian Banks’ Association (IBA) Model Education Loan Scheme. It covers higher education in NAAC-accredited institutions, NBA-accredited programs, or Institutions of National Importance.
To apply for an education loan from the government under the CSIS subsidy scheme, you need to take an education loan from a scheduled bank under the Model Education Loan Scheme. Ensure that the bank uploads your claim for interest subsidy on the Canara Bank portal and the subsidy is credited directly to the loan account via DBT mode.
Credit Guarantee Fund Scheme for Education Loans (CGFSEL)
The Credit Guarantee Fund Scheme for Education Loans, CGFSEL Scheme offers collateral-free loans for students, backed by a government guarantee. You can get loans up to INR 7.5 lakhs without collateral or third-party guarantees. The scheme also provides a guarantee cover of 75% on the loan amount in default.
You can apply for an education loan at a bank approved under the CGFSEL scheme. The bank handles the paperwork for availing of the credit guarantee.
Central Sector Scheme of Scholarship (CSSS)
The Central Sector Scheme of Scholarship (CSSS) aims to support meritorious students from economically weaker sections (EWS) by offering financial assistance for higher education. This initiative ensures that financial challenges do not deter deserving students from pursuing quality education and achieving their academic goals.
It is open to students who score in the top 20th percentile in their respective Class 12 board examinations. Students must pursue UG or PG degrees in recognised universities. To avail of this, the annual family income from all sources should not exceed INR 8 lakhs.
You get INR 10,000 per year for the first three years of graduation and INR 20,000 per year for postgraduate studies in the fourth and fifth years (if applicable). You can apply online through the National Scholarship Portal (NSP). Submit required documents such as Class 12 marksheets, income certificates, bank account details, and institution verification.
Also Read: Check out these top Indian Govt Scholarships to Study Abroad. Know the eligibility criteria, expenses covered, and benefits.
Explore State Government Education Loan Schemes
In addition to national schemes, several state governments in India offer their own education loan programs to support students in pursuing higher education. These state-level schemes often have specific eligibility criteria and benefits tailored to local needs. Check out the details below-
Gujarat State Education Loan Scheme
The Gujarat government offers financial support to students from economically weaker sections to help them pursue higher education in India and abroad. The scheme covers courses in engineering, medicine, management, and other professional fields.
- Loans for undergraduate, postgraduate, and diploma courses.
- Financial support for up to 100% of tuition fees, books, and other educational expenses.
- Interest rate subsidy is available for students from families with low incomes.
To be eligible for the scheme, students must be residents of Gujarat. The family income limit should also be below INR 6 lakhs annually. To apply, students can apply online via the Gujarat State Education Loan Scheme portal or approach authorized banks for assistance.
Tamil Nadu State Education Loan Scheme
The Tamil Nadu government provides an education loan scheme aimed at helping students from economically disadvantaged backgrounds. This scheme is designed to cover a wide range of courses including technical, professional, and vocational courses.
- Provides loans for tuition fees, exam fees, and other related educational expenses.
- Loans up to INR 10 lakhs for higher studies in India and abroad.
- Interest subsidy for students from backward and economically weaker sections.
Students must be residents of Tamil Nadu and the family income should not exceed INR 2.5 lakhs annually to be eligible for the education loan. The scheme is accessible through the Tamil Nadu State Government Portal, and students must submit their application with all necessary documents.
Special Scholarship Scheme for Jammu & Kashmir and Ladakh
The Special Scholarship Scheme for Jammu & Kashmir and Ladakh (SSSJ&K) is designed to improve educational opportunities. It encourages students domiciled in Jammu & Kashmir and Ladakh to pursue quality education in institutions across the country.
Students must have passed their Class 12 or equivalent exams from recognized boards in J&K or Ladakh and secure admission to recognized institutions outside the region. You can apply through the AICTE Portal and avail of the given financial assistance-
- Tuition fee reimbursement up to INR 1.25 lakhs per annum for general degree courses.
- Up to INR 3 lakhs per annum for professional courses like engineering, medical, or management.
- Maintenance allowance of INR 1 lakh per annum for hostel and other living expenses.
Other State-Specific Education Loan Schemes
- Maharashtra: The Maharashtra government offers the Mahatma Jyotirao Phule Scholarship for students from backward classes, which provides financial assistance to pursue education in India and abroad.
- Karnataka: The Karnataka government provides the Karnataka Education Loan Scheme, which offers loans for students from economically weaker backgrounds to pursue higher studies, covering tuition and accommodation costs.
- Rajasthan: The Rajasthan government’s Rajasthan Education Loan Schemes for Minorities helps students from low-income families by providing financial support for professional and technical education.
- West Bengal: The education loan schemes in West Bengal provide financial aid to students for higher studies, with an emphasis on providing easy repayment terms.
Also Read: Planning to study abroad? Learn how to get an education loan to study abroad and cover tuition fees and living expenses.
Apply on the Vidya Lakshmi Portal
The Vidya Lakshmi Portal is the official platform by the government for students to apply for education loans from multiple banks. It was developed by the Department of Financial Services, the Department of Higher Education, and the Indian Banks Association (IBA).
To apply for education loans from the government, you can use this portal as it simplifies the application process. To begin with, you must register, create an account using your mobile number and email ID, and log in.
39 Indian banks (public and private) have registered 70 education loan schemes. You can browse loan options using the ‘Search and Apply for Loan Scheme’ feature on the dashboard. By filling out the Common Education Loan Application Form (CELAF), you can apply for education loans to a maximum of three banks. Make sure to choose the lender based on your eligibility and preferences.
For instance, consider Rahul, a student planning to pursue studies abroad with an education loan of INR 60 lakhs. He chose the State Bank of India’s Global Ed-Vantage Scheme based on its features and requirements.
Rahul clicked on ‘Apply for the SBI Global Ed-Vantage Scheme’ and was redirected to the standardized Common Education Loan Application Form (CELAF). He provided the necessary details, including personal and banking information, and course and cost details, and uploaded all required documents.
This streamlined process enabled him to apply for his education loan with ease, demonstrating the convenience of using the Vidya Lakshmi Portal for securing educational financing.
This was all about how to apply for an education loan from the government. To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs
Students between 16-35 years of age, with confirmed admission to recognized institutions, and a stable source of income are eligible for a government education loan.
You can apply for the Modi education loan under the PM-Vidyalaxmi Scheme via the Vidya Lakshmi Portal. Submit the Common Education Loan Application Form (CELAF) and necessary documents.
Yes, students can avail of 100% education loans under schemes like CGFSEL for up to INR 7.5 lakh without collateral. However, the loan amount depends on the institution and the course.
The PM-Vidyalaxmi Scheme offers collateral-free loans to students admitted to the top 860 institutions in India. Eligibility depends on academic merit and admission to recognized institutions.
For schemes like the Central Sector Interest Subsidy Scheme (CSIS), the family income should not exceed INR 4.5 lakh per annum for eligibility.
Yes, students from economically weaker sections with an annual family income up to INR 4.5 lakh can access education loans under various government schemes like CSIS.
To apply for an education loan, visit platforms like the Vidya Lakshmi Portal, NSP, or Canara Bank Portal. Fill out the necessary forms, submit documents, and choose the appropriate scheme.
Required documents usually include KYC details, academic records, admission proof, income proof, and bank statements. The exact requirements depend on the selected loan scheme.
Interest rates vary based on the scheme and loan amount. Schemes like CSIS provide interest subsidies during the moratorium period for eligible students.
Yes, you can apply for additional loans, provided you meet the eligibility criteria for the new loan. Ensure that you are not overburdened with existing debt.
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